Importance of PnL in trading.📊📉📈
In modern trading, PnL is a fundamental metric that allows you to evaluate the performance of your investments in real time. On platforms like Binance, it is not just a number, but a tool for risk management and analysis.
It is divided into two essential categories:
* Realized PnL: This is the profit or loss that you have already secured by closing a trade. For example, if you buy Bitcoin at $60,000 and sell it at $62,000, the $2,000 profit is your realized PnL. This figure is the final result that affects your capital.
* Unrealized PnL: This refers to the potential profit or loss of the positions you still have open. If you bought Ethereum at $4,000 and its price is now $4,500, you have an unrealized PnL of $500. This value fluctuates constantly with the market and is not finalized until you decide to sell.
Today, PnL is more than just a simple calculation; platforms present it with graphs and detailed analyses so that traders can visualize their performance over time. This helps identify patterns, assess the effectiveness of a strategy, and make more informed decisions, such as when to take profits or cut losses. It is the clearest way to measure success and discipline in the market.